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Case Studies

Tech Firm Sees Savings by Outsourcing Non-Production Functions
Summary
A major technology company was considering global back-office outsourcing and best shore assessment of most non-production-related functions. These included CRM functions, Finance, HR, Call Center, middle-office processing, billing, customer service and Tele-sales. Some 3,000 employees and contractors located across Europe, North America and Asia were considered in the assessment.
Client Challenge Cost-effective resources needed to support an aggressive growth strategy by using a global cost basis More than half of in-scope staff located outside of the U.S., but in high-cost locations. Potential re-booking of earnings if Irish tax authorities changed the client’s tax status based on movement of operations True cost of current operations (to make an effective sourcing decision) not known How Alsbridge Helped Evaluated global operations to determine best scope, location and configuration to provide the highest quality services Determined true total cost and a high-level process map to best shore client operation and facilitate the decision by management of what functions to outsource and offshore. Provided a net business case that evaluated risk, benefit, exact timing of a straw-person migration plan; and a business case expressed in the form of net cash required, Net Present Value (NPV), Internal rate of Return (IRR), and months to net zero on cash Benefit Client is currently implementing the recommended plan with a mix of outsourced and captive offshore operations. Savings targets are significant and confidential due to the ongoing nature of this engagement.

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